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Terra Classic (LUNC) Transfers on Binance (BNB) Will Be Taxed. When?

Sat, 09/24/2022 - 16:55
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Vladislav Sopov
Binance (BNB), largest centralized cryptocurrency exchange, decided to finally impose tax on LUNC transfers
Terra Classic (LUNC) Transfers on Binance (BNB) Will Be Taxed. When?
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Chinese crypto journalist and insider Colin Wu noticed that Binance (BNB), a top-tier cryptocurrency ecosystem, is getting closer to the implementation of a tax on LUNC transactions.

Binance (BNB) implements 1.2% burn tax in two steps

Mr. Wu has taken to Twitter to share that the cryptocurrency exchange Binance (BNB) confirmed its decision to implement a 1.2% token burn rate on every transaction.

The major upgrade will be implemented in two steps. First, when the amount of LUNC tokens stored in "opt-in" ("approving") accounts, the tax will be applied to "opt-in" traders only.

Then, once the limit of the LUNC share stored by opt-in account reaches 50%, the tax will be implemented to all LUNC transfers for Binance (BNB) users.

As such, very soon Binance (BNB) might become the largest crypto exchange to adopt LUNC transfer taxation.  

What is LUNC burn tax and why does Terra Classic need it?

As covered by U.Today previously, the implementation of a 1.2% tax on LUNC and USTC trading and transfers catalyzed interest in the Terra-backed stablecoin and the native crypto asset.

Related
Terra Developer Highlights Biggest Challenge LUNC Might Face in Midterm: Details

The "burn tax" was applied to make the LUNC token deflationary and to avoid dangerous pumps and dumps. In turn, this makes the tokenomics of Terra Classic (LUNC) more predictable.

Terra Classic (LUNC) and TerraClassicUSD (USTC) are two assets issued on the canonic Terra (LUNA) blockchain after its collapse.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)